18. Sam files jointly with his wife, and they have 2 children. The family's gross income is $125, 400, and they pay $12, 500 into an IRA. The standard deduction is $12, 600, and the amount of a personal exemption is $4, 050. The tax rate for Sam's family is $10, 367.50 plus 25% of the amount over $75, 300. Sam's family had $1, 400 withheld from their paychecks each month for taxes. Determine the amount of tax due to the IRS or the amount overpaid. Sam's family will receive a refund of $4, 257.50. Sam's family owes $4, 257.50. Sam's family owes $12, 542.50. Sam's family will receive a refund of $12, 542.50.

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